Court confirmed sentence on Admiral Gorshkov overhaul

07.09.2011 Arkhangelsk Regional Court affirmed the inferior decision to impose a RUR 100,000 fine on director of the company provided repair works for aircraft-carrying cruiser Admiral Gorshkov, reported Arkhangelsk Procuracy press service on Sept 6.

According to the procuracy, JSC SMK Alternativa was conducting repairs and modernization of the carrier without appropriate license for repair activities on military equipment. The court found director of SMK Alternativa Inna Salmanova guilty in accordance with Clause 171/2/b, RF Criminal Code (illegal enterprise associated with large-scale revenues). The company had made a profit of over RUR 16 mln.

"Mrs. Salmanova tied a contract with Sevmash shipyard in violation of legislative requirements; JSC SMK Alternativa since June 2006 till June 2009 had been repairing aircraft carrier Admiral Gorshkov for Indian Navy. The court imposed the RUR 100,000 fine on Mrs. Salmanova. The decision has already taken legal effect", the press release said.

The contract for modernization of aircraft-carrying cruiser Admiral Gorshkov (renamed into INS Vikramaditya) for Indian Navy was tied in 2004. It became the largest export contract in Russian-Indian military technical cooperation. Initially, modernization was evaluated as $616 mln, and the ship was planned to join Indian Navy in 2008. However, due to increased scope of works, the ship's delivery date was postponed for 2012, and India was asked to pay additional money. The parties had come to terms on the contract cost in Dec 2009, after two years of negotiations. According to Indian media, it is $2.3 bln.